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Слайды и текст этой презентации

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WHAT IS A GOOD PROJECT? REGIONAL DEVELOPMENT

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OUTLINE Multi-level Governance: Age of Experimentation Challenges for regions Experimentation as a Way of Governing The example of Kaluga What is a Successful Project?

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MULTI-LEVEL GOVERNANCE AGE OF EXPERIMENTATION

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MULTI-LEVEL GOVERNANCE

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DECENTRALIZATION US and Germany: Regions acquiring greater authority over programs Coordination between Federal and Regional levels for cross-border issues Sustainability policies: they work better at the regional level At all levels: Integrative policy approaches

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ISSUES FOR REGIONS: THE ENVIRONMENT IN THE US Environmental issues previously resolved at the Federal level now allocated to regions State spending grew far faster than Federal Spending From 40% in 1980s to 60% of programs now at state level; states spend twice the amount

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EQUALIZATION OR GROWTH: THE TRADE-OFF IN REGIONAL POLICY Federal and Regional programs Some fiscal transfers for welfare Some sectoral policies Some competitive pressures Multi-level planning is critical Make up for regional differences in capacity for solving problems, capacity for learning new routines, economic advantages

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BOTH GOALS IMPORTANT Choices require flexibility The answer tomorrow may be different from the answer today Is the answer going to help govern better? I.E.: Does the answer promote learning, is it incentive compatible with growth, is it incentive compatible with multi-level cooperation

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REGIONAL/FEDERAL PROGRAMS MUST BE COORDINATED

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MANY FEDERATED STATES ARE RELATIVELY CENTRALIZED Tax collection almost entirely centralized for efficiency (mobility of the tax base and tax composition within the country) In Russia—lack of trust in fairness and organizational capacity of the regions; an effort to increase tax discipline Legal and administrative affairs are centralized Spending (via transfers) is largely targeted funds Who decides what to target?

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CENTRALIZATION TENDENCIES

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DIFFERENT COUNTRIES DIVERGE Canada allocates decision-making downward (except not to municipalities) The principle is adaptivity Profit tax is federal, but provinces can add to it The chart below shows how this has evolved:

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RUSSIAN FEDERALISM: EXPERIMENTATION Centralized Soviet command economy Decentralization in the early 1990s Recentralization in late 1990s, vertical imposed Post 2012 re-decentralization The 83 Regions:

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RUSSIA’S FAST ADVANCING REGIONS: MOST = NEXT =

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WHY MANY COUNTRIES STILL FOLLOW CENTRALIZED MODEL Regions can be greatly influenced by interest groups, and devolution can lead to extreme inequality Regional interests can dominate over classic views of efficiency (example—regions in Canada resist the VAT) Also, provincial voters can be unsure about trade-offs (education vs health care—young/old voters) Also, this system is expensive: Russia is still moving toward an improved administration But regions may eventually acquire the profit tax revenue

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DISTRIBUTED GOVERNANCE TRENDS

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EXPERIMENTAL GOVERNANCE Supple public and private organizations Capable of regularly redistributing responsibility according to the nature of the task rather than on the basis of a rigid authority structure. Spontaneous determination of the most appropriate level for wielding power and taking responsibility Weakening the attribute of most prevailing governance systems--hierarchical or top-down methods for determining goals and means

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CHALLENGES FOR RUSSIA’S REGIONS KEY ISSUES

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REGIONAL GENERAL ISSUES Water Electricity Sewage Police Roads Education Care: disabled, elderly, unemployed Emergencies: floods

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SPECIAL ISSUES Diversification in energy abundatnt regions Ecology-Exploration Trade-off in Arctic Agricultural infrastructure Drought and Flood Transportation One-industry Towns Corruption and Trust

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EACH SPHERE HAS BUNDLE OF TASKS For example, Human Resources

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HUMAN RESOURCES Must be approached by: Multi-level government New technology (digitalization of records) Training for E-government Youth programs (Tatarstan!)

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DROUGHT IN RUSSIA’S SOUTH What is the answer?

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DROUGHT MANAGEMENT WILL DIFFER In Rostov, Volgograd, Stavropol and Kalmykia Republic (South) Saratov, Orenburg (Volga federal district) Kurgan, Chelyabinsk (Urals) Kemerovo (Siberian federal district)

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DROUGHT MANAGEMENT Caused by combinations of meteorological, hydrological and storage water deficiencies: long-term response Surface water storage: on and off-stream storages. Groundwater Re-use: treated sewage and grey water. Storm water: for treatment and supply by water authorities. Networking systems: transfers of water within and between basins which were previously independent harvesting and supply systems. Rainwater tanks Dead storage pumping: water contained below conventional offtake levels. Cloud seeding: a potential long-term measure, previously undertaken by the CSIRO to stimulate rainfall from suitable cloud formations.

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FLOODING Federal , Local and Regional Interaction

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REGIONAL PROJECTS FOR FLOOD MANAGEMENT

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FLOOD MANAGEMENT: REGIONAL AND LOCAL

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EXPERIMENTATION AS A WAY OF GOVERNING

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WHAT SEEMS TO WORK Ideas from other transition countries Ideas from the EU Ideas from Russia’s own experience

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ANSWERS EMERGING Regions as “Investment Machines” Coordinated policies toward inward investment Combined efforts by Regions, State, Localities Good government Predictability Trustworthiness

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ANSWERS FROM RUSSIA: LEADERSHIP In the 1990s, right resources seemed to be the answer (no military industries) Now it is clear that the right leaders is the answer

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THE KALUGA JOINT SUCCESS Spilling over with success

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FEDERAL AND SUBNATIONAL EFFORT Pro-Investment Strategy Begins 2006 Results staggering:

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STARTING POINT: 1998 Location: Along Moscow–Kiev motorway, backbone of the spatial economic organization Proximitiy to Moscow (170 km) Regional economy Military-oriented (one/half employees in 1980s) Machine-building Production of transportation and related equipment (mainly for railroads), Science, nuclear physics research Russia’s First Nuclear Reactor: in Obninsk (106,000 population) Few natural resources (some ag, timber, logging) Wood-working and paper industries

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THEN DECLINE, THEN GROWTH In 1990s, output shrank by almost 60% After 2006, it began to grow far faster than Russian average As next figure shows* *Dmitry Zimin, “Promoting Investment in Russia’s Regions,” Eurasian Geography and Economics, 2010, 51, No. 5, pp. 653–668.

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WHAT HAPPENED? “Investment Promotion Machine” as in Central European States Foreign involvement does not always produce wealth (financial gap, no spillovers) Require consensus among political and economic elites at national/regional/local level No single project can do it Requires stable, predictable and honest government Greenfield investments work best

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KALUGA PROJECTS (2005-8) WITH FEDERAL SUPPORT Public funds invested in industrial parks (techno-parks) Public funds invested in transportation infrastructure (Federal investment in Moscow-Kiev motorway connecting Kaluga/Obninsk with Moscow Investment financed by borrowing (new corporation) The Russian Detroit

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PUBLIC AND PRIVATE PARTNERSHIP TECHNOPARK “VOLVO-VOSTOK”

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INDUSTRIAL ZONES Created four industrial zones (linking Kaluga, Obninsk with businesses) Public funds reconstructed them, then carefully sold to private investors Created One-stop shop for investors (Kaluga Regional Development Agency) Helped investors with permissions (environmental, safety), services, meetings with public officials

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STARTED WITH 4 MAJOR INVESTORS Volkswagen, PSA joint venture, Samsung Electronics and Volvo Trucks A stream of others followed Only Greenfield projects: property rights still insufficiently protected

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SPILLOVERS Real estate investors (housing construction boom) Residence and Entertainment Parks Entry of investors from many countries South Korea, Russia, French, Swedish Foreign retail chains

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RESULTS Regional Industrial Output Grew by 63% from 2006-2008 Particular in automotive industry Foreign investment skyrocketed Retail sector grew Public sector funded a new Development Corporation to look for more funds

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PARTNERSHIPS Federal level industrial policy: High duties on imported cars Allows foreign automotive investors to bring in parts duty free Local production required for 30% of total cost

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EXPLOITING PROXIMITY TO MOSCOW Transportation infrastructure allows close communication As Moscow grows more expensive, Kaluga is attractive alternative for investors

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PROBLEMS Corruption continues There are high costs—construction Financial crisis struck Kaluga Debt rises (result of borrowing) Budget income fell by 4% (nominal) However, federal transfers rose by 14%

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SUCCESSFUL REGIONAL PROJECT

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WHAT IS A SUCCESSFUL PROJECT? CONCLUSION

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TECHNOLOGICAL AND INVESTMENT ORIENTATION Technologies that foster economic, social and technological dynamism, participation Outcomes must include learning, changing Reconciliation of winners and losers

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DIFFUSION OF GOVERNANCE CAPACITY Foundation is the law at the Federal level But there are intangibles to be produced by regional policy-making: By delegating: find creative solutions By localizing stimulate learning and participation

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ADAPTABLE TASK-ORIENTED PROJECTS Federal level can resolve what would create conflict at the regional level Regions can learn to work through these conflicts Find a balance between loose and controlled governance that suits the situation Flexible supply networks for newly identified needs

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LOOSE AND CONTROLLED GOVERNANCE Contracts should be transactional or relational Depending on whether the task calls for loose or controlled governance Relational tend to be more effective

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INDICATORS FOR CONTROLLED PROJECTS Results or process oriented Outcomes are important Demographic, social, economic Responsibility for projects is localized and clear Milestones and targets well defined

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INDICATORS FOR LOOSE GOVERNANCE Improved skills and processes Improved trust between levels of government Amicable agreements Implemented by “soft laws” rather than commands and strict regimes Milestones: Innovation, adaptability, and learning capacity Development of networks of independent actors.